Education Secretary Betsy DeVos (Photo: Bloomberg)
The Department of Education said Friday that it is extending the moratorium on federal student loan payments to Dec. 31, 2020.
The moratorium, which was included in the CARES Act, was scheduled to expire after Sept. 30, 2020.
The extension — one of several executive orders that President Trump issued on Aug. 8 — directed Education Secretary Betsy DeVos to "provide such deferments to borrowers as necessary to continue the temporary cessation of payments and waiver of all interest on student loans held by the Department of Education until Dec. 31, 2020."
Borrowers will not be assessed any interest in the interim, but they do have the option of making payments if they choose to.
In addition, collections on defaulted federal held student loans will be halted, and any such borrower whose employer continues to garnish their wages for payment of those loans will receive a refund of those garnishments, according to the press release from the Department of Education.
